Sofia, Aug 10 (BTA/GNA) – Half of the companies in Bulgaria have adjusted their employees’ salaries to the rising inflation, according to a poll by the Bulgarian Chamber of Commerce and Industry (BCCI) among its members. The poll sought to examine the impact of inflation on the labour market and was carried out from July 19 to 29.
Nearly 80% of entrepreneurs reported a serious increase in the prices of raw materials and energy products. One-third of the companies have postponed investments to be able to compensate for the inflation levels, and in over a quarter of the companies the turnover has increased but the amount of their profit has decreased. 21% of respondents saw a reduction in staff numbers. Others pointed out that, as a result of inflation, Bulgaria had lost some of its competitive advantages over other EU producers.
53% of entrepreneurs have increased employee salaries in order to adjust them to the increased prices of goods and services.
The data confirmed the concerns about the need to increase wages, expressed by 51% of Bulgarian business people in the June poll in the context of expectations of Bulgaria’s accession to the euro area.
For half of the entrepreneurs, the wage increase was between 5% and 10%. 24% of the enterprises have increased wages ahead of inflation, above or at the rate of inflation as of June 2022, which is close to 17%. 9% say the increase was 3.3%, which is as much as inflation for 2021.
Businesses express serious concerns about future inflation in Bulgaria and Europe. According to some, the crisis is only now beginning. 66% of entrepreneurs do not expect inflation to return to pre-crisis levels soon, and over 20% say they expect it to fall seriously when the political situation in the country stabilizes or when the war in Ukraine ends. Only 2% expect inflation to recover to tolerable levels by the end of the year.
BTA/GNA